WEBVTT 00:00:09.320 --> 00:00:11.085 Welcome to after the paycheck, the series 00:00:11.085 --> 00:00:13.460 dedicated to helping people to and through the retirement 00:00:13.460 --> 00:00:15.000 process I'm your host, Adam Lee. 00:00:15.000 --> 00:00:16.610 This week I am here with Brian mastan, 00:00:16.610 --> 00:00:19.160 partner here at rabinow Wealth Partners. 00:00:19.160 --> 00:00:21.100 Pleasure always to be here with you, Adam. 00:00:21.100 --> 00:00:22.850 Always I like how we're getting to a point 00:00:22.850 --> 00:00:24.850 where we can see each other more often. 00:00:24.850 --> 00:00:27.590 I know it does feel like things are slowly 00:00:27.590 --> 00:00:29.970 getting back to a little more normalcy, right? 00:00:29.970 --> 00:00:31.730 Yeah, I was reading an article that they 00:00:31.730 --> 00:00:35.180 were saying that this social distancing in massacring 00:00:35.180 --> 00:00:37.400 might continue for a few more years just because 00:00:37.400 --> 00:00:39.920 of variance and everything that are going on. 00:00:39.920 --> 00:00:43.070 But I think just that slight reprieve is like 00:00:43.070 --> 00:00:44.550 really what people need. 00:00:44.550 --> 00:00:46.880 Yes socialization, get out of your house a little bit 00:00:46.880 --> 00:00:49.163 just to kind of get out of the whatever routine 00:00:49.163 --> 00:00:50.330 you've been in for like a year now. 00:00:50.330 --> 00:00:52.910 Right I was still in Virginia that, like Kristin 00:00:52.910 --> 00:00:54.890 and I have this we got conjoining tests 00:00:54.890 --> 00:00:57.148 to make room because Daphne has needs a little 00:00:57.148 --> 00:00:58.440 bit more area to play with her toy. 00:00:58.440 --> 00:01:00.190 So, like, I look at this that are together next to 00:01:00.190 --> 00:01:01.880 each other with the thought 00:01:01.880 --> 00:01:03.620 process that was back in march, OK, 00:01:03.620 --> 00:01:05.400 we're going to do this for like six, eight weeks maybe. 00:01:05.400 --> 00:01:07.858 Yeah now that it's a year of us working next to each other. We're like, 00:01:07.858 --> 00:01:10.670 all right, maybe we're going to need to get out. 00:01:10.670 --> 00:01:13.777 I'm going to go into the office today. 00:01:13.777 --> 00:01:14.610 Kristin, I love you. 00:01:14.610 --> 00:01:16.190 But, yeah, sometimes you just need 00:01:16.190 --> 00:01:18.540 to be able to get out and socialize. 00:01:18.540 --> 00:01:23.330 But we are continuing with our episodes here, 00:01:23.330 --> 00:01:25.400 following up with at the end of last year, 00:01:25.400 --> 00:01:27.587 we sent out a little survey to people I subscribe to 00:01:27.587 --> 00:01:30.170 after the Paycheck and we asked their feedback and some topics 00:01:30.170 --> 00:01:32.280 that we should go after this year in. 00:01:32.280 --> 00:01:34.265 A lot of people responded with questions 00:01:34.265 --> 00:01:35.640 about health care and retirement. 00:01:35.640 --> 00:01:40.160 Yeah, there's a lot of confusion about the times 00:01:40.160 --> 00:01:41.090 when you retire. 00:01:41.090 --> 00:01:42.350 What does health care matter? 00:01:42.350 --> 00:01:43.410 What are my options? 00:01:43.410 --> 00:01:45.330 You know, when that happens, what is it going to cost? 00:01:45.330 --> 00:01:45.997 Stuff like that. So 00:01:45.997 --> 00:01:48.440 I figured with today's episode, 00:01:48.440 --> 00:01:50.630 we'd go over kind of that journey like maybe 00:01:50.630 --> 00:01:54.420 some scenarios, that picture and then just kind of play 00:01:54.420 --> 00:01:54.920 that out. 00:01:54.920 --> 00:01:58.650 Yeah and I like when I sit down with people. 00:01:58.650 --> 00:02:01.610 And I think I'm a very common question 00:02:01.610 --> 00:02:06.050 is, is a concern is about health care and Medicare. 00:02:06.050 --> 00:02:09.270 And, you know, if you're on time for 60 five, can you do it? 00:02:09.270 --> 00:02:10.770 What do you do for health insurance. 00:02:10.770 --> 00:02:14.100 And if you are 65 and retiring, what's the process? 00:02:14.100 --> 00:02:17.450 So that's a very common question and concern we see a lot. 00:02:17.450 --> 00:02:18.220 Yeah, you would. 00:02:18.220 --> 00:02:18.720 You would. 00:02:18.720 --> 00:02:19.560 Well I guess not. 00:02:19.560 --> 00:02:21.170 You would think, but I would imagine 00:02:21.170 --> 00:02:23.570 like if retirement and all of these things about 00:02:23.570 --> 00:02:25.070 if I'm going to have enough money to retire 00:02:25.070 --> 00:02:28.250 or maximizing my income sources and everything like that, 00:02:28.250 --> 00:02:30.530 health care is not something that also should 00:02:30.530 --> 00:02:32.520 be at the forefront, but it is. 00:02:32.520 --> 00:02:34.865 But as we can tell from the responses that we got, 00:02:34.865 --> 00:02:36.990 that it really does become a very important factor. 00:02:36.990 --> 00:02:40.580 It is because there's like a level of financial risk 00:02:40.580 --> 00:02:43.640 if you're not insured properly, just like anything else that 00:02:43.640 --> 00:02:47.660 can really severely jeopardize your retirement if you 00:02:47.660 --> 00:02:50.220 don't plan for it or insure insure for it in this case. 00:02:50.220 --> 00:02:51.140 Right Yeah. 00:02:51.140 --> 00:02:55.100 And a lot of people are aware now that you can't get Medicare 00:02:55.100 --> 00:02:57.360 unless you're over 65. 00:02:57.360 --> 00:03:00.140 Right 65 or older, 65 or older, with 00:03:00.140 --> 00:03:01.440 other certain circumstances. 00:03:01.440 --> 00:03:03.107 For like disabilities if you're younger. But yeah, 00:03:03.107 --> 00:03:05.447 for the most part, 65 are OK. 00:03:05.447 --> 00:03:07.280 And that may be something we can touch upon, 00:03:07.280 --> 00:03:08.790 but let's kind of go through that. 00:03:08.790 --> 00:03:11.270 So let's go over options first for people 00:03:11.270 --> 00:03:13.520 who want to retire before the age of 65, 00:03:13.520 --> 00:03:17.220 whether that be by choice or more for medical reasons. 00:03:17.220 --> 00:03:19.490 And then what your options are and then 00:03:19.490 --> 00:03:21.200 if that's available, choice to you 00:03:21.200 --> 00:03:22.910 and if it's a viable choice to you. 00:03:22.910 --> 00:03:23.580 Sure sure. 00:03:23.580 --> 00:03:26.390 So, like, you know, if you're considering retiring before 00:03:26.390 --> 00:03:28.640 60 five, what you should first the first thing you should 00:03:28.640 --> 00:03:32.210 do is contact or go to your HR department at your company 00:03:32.210 --> 00:03:34.543 because they might offer some level of insurance 00:03:34.543 --> 00:03:36.710 or continuance of the insurance plan that you're in, 00:03:36.710 --> 00:03:37.470 you're in now. 00:03:37.470 --> 00:03:41.670 OK, so that would probably be the ideal situation. 00:03:41.670 --> 00:03:44.030 If you get continued insurance through your company, 00:03:44.030 --> 00:03:46.310 that would get you to that 65 threshold 00:03:46.310 --> 00:03:49.460 and then that would stop and Medicare and supplements 00:03:49.460 --> 00:03:51.920 might kick in. 00:03:51.920 --> 00:03:56.360 And then if that is not the case under the COVID act, 00:03:56.360 --> 00:04:00.650 that if your company that you're working for currently 00:04:00.650 --> 00:04:03.020 is 20 or more employees, you can actually 00:04:03.020 --> 00:04:06.380 get COVID insurance, which is a continuation 00:04:06.380 --> 00:04:08.690 of that same group, health insurance that you 00:04:08.690 --> 00:04:09.990 were on with your employer. 00:04:09.990 --> 00:04:11.378 So that would just continue. 00:04:11.378 --> 00:04:12.920 The downside is you're probably going 00:04:12.920 --> 00:04:15.470 to have an increase in what your cost is because you 00:04:15.470 --> 00:04:17.579 have to cover both sides. 00:04:17.579 --> 00:04:20.540 Now, what you know that if you project for that and plan 00:04:20.540 --> 00:04:23.510 for that might get you to 65 depending 00:04:23.510 --> 00:04:25.250 when you retire because that can go 00:04:25.250 --> 00:04:27.210 Cobra covers up to 18 months. 00:04:27.210 --> 00:04:28.680 OK, so nothing more than that. 00:04:28.680 --> 00:04:30.740 And then, you know, the other option 00:04:30.740 --> 00:04:33.710 is just self-insured self insuring through like a company 00:04:33.710 --> 00:04:37.220 and exploring different options you don't like. 00:04:37.220 --> 00:04:41.630 The Blue Cross and Blue Cross Blue Shield in Massachusetts 00:04:41.630 --> 00:04:42.450 are Transamerican. 00:04:42.450 --> 00:04:43.520 There's a lot of options. 00:04:43.520 --> 00:04:46.280 OK, we live in a state in Massachusetts 00:04:46.280 --> 00:04:48.470 and if you are watching in from Massachusetts 00:04:48.470 --> 00:04:50.720 that we have the MassHealth connector, which is great, and we 00:04:50.720 --> 00:04:55.220 were the first state to actually have a forum of health 00:04:55.220 --> 00:04:58.312 insurance plans, I think it was in the mid to early 2000s. 00:04:58.312 --> 00:05:00.020 So if you go on the MassHealth connector, 00:05:00.020 --> 00:05:02.720 you can actually exploit all your different options 00:05:02.720 --> 00:05:06.663 for health care if your before age 65. 00:05:06.663 --> 00:05:08.330 I wouldn't want to see what's available. 00:05:08.330 --> 00:05:09.970 OK, so going. 00:05:09.970 --> 00:05:12.510 So we just ran over, like, three things real quick, right? 00:05:12.510 --> 00:05:16.130 So there's that option to potentially continue 00:05:16.130 --> 00:05:17.780 to be covered by your employer. 00:05:17.780 --> 00:05:20.840 Yeah so if I'm 62 and I go to my employer and say, 00:05:20.840 --> 00:05:22.647 you know what, I've had a good run here, 00:05:22.647 --> 00:05:24.230 but I think I have enough to retire in 00:05:24.230 --> 00:05:29.150 about what is the likelihood that my employer is going 00:05:29.150 --> 00:05:33.500 to be OK with still paying their share of insurance 00:05:33.500 --> 00:05:36.080 for me to still be on it, even though I'm retiring? 00:05:36.080 --> 00:05:38.950 Probably less likely. 00:05:38.950 --> 00:05:41.255 OK, if I mean, if I had to guess, 00:05:41.255 --> 00:05:43.130 it depends on your company and their benefits 00:05:43.130 --> 00:05:44.630 that they have in place. 00:05:44.630 --> 00:05:48.335 So I would say less likely because it 00:05:48.335 --> 00:05:50.210 is that something I should look into before I 00:05:50.210 --> 00:05:51.950 consider making that move. 00:05:51.950 --> 00:05:53.750 Any of these options, you should make sure 00:05:53.750 --> 00:05:57.680 because there's a different level of cost with each option. 00:05:57.680 --> 00:05:59.240 And if you're not planning for that 00:05:59.240 --> 00:06:01.070 and you retire and all of a sudden you're 00:06:01.070 --> 00:06:03.150 surprised with, oh, wow, this is the health care 00:06:03.150 --> 00:06:05.420 cost we have to pay, you might be 00:06:05.420 --> 00:06:08.810 paying 20 plus $1,000 for a family plan 00:06:08.810 --> 00:06:11.360 that you weren't projecting for until you get to 65. 00:06:11.360 --> 00:06:14.182 Right which is a big, big cost, obviously. 00:06:14.182 --> 00:06:15.890 So you want to make sure you're exploring 00:06:15.890 --> 00:06:19.580 whatever option it is before you actually decide to retire. 00:06:19.580 --> 00:06:21.930 And that's, that's definitely for sure. 00:06:21.930 --> 00:06:22.820 OK, Yeah. 00:06:22.820 --> 00:06:26.223 And then you start you started to then go into Cobra as that. 00:06:26.223 --> 00:06:28.140 If your employer doesn't give you that option. 00:06:28.140 --> 00:06:29.420 Yeah as long as you're working, you 00:06:29.420 --> 00:06:30.670 were working for that company. That 00:06:30.670 --> 00:06:33.530 again, is 20 or more employees. 00:06:33.530 --> 00:06:37.550 The Cobra act states that you are entitled 00:06:37.550 --> 00:06:40.130 to COVID insurance for up to an 18 month period, 00:06:40.130 --> 00:06:42.500 which is a continuance of that group health plan 00:06:42.500 --> 00:06:43.490 that you were on. 00:06:43.490 --> 00:06:45.065 But again, the premiums or your cost 00:06:45.065 --> 00:06:46.940 might be going up because now you're covering 00:06:46.940 --> 00:06:48.710 both sides or 100% of it. 00:06:48.710 --> 00:06:50.510 OK, so your cost might be higher, 00:06:50.510 --> 00:06:52.370 but it might be a good option if you have really good health 00:06:52.370 --> 00:06:52.870 insurance. Yeah, 00:06:52.870 --> 00:06:55.740 and and that probably is only a good fit. 00:06:55.740 --> 00:06:58.230 If you're just over 63 and want to retire. 00:06:58.230 --> 00:07:00.200 Right to 18 months. 00:07:00.200 --> 00:07:03.105 So if you're even considering retiring even before that, 00:07:03.105 --> 00:07:05.480 you might just want to look into private health insurance 00:07:05.480 --> 00:07:09.230 options and weigh the different options that are available 00:07:09.230 --> 00:07:10.790 based on what your needs are. 00:07:10.790 --> 00:07:13.230 If we'll probably get into this, too, in a minute. 00:07:13.230 --> 00:07:16.355 But just kind of foreshadow for Medicare, is that a life 00:07:16.355 --> 00:07:16.980 changing event? 00:07:16.980 --> 00:07:19.107 So I know like, you know, now like as 00:07:19.107 --> 00:07:21.440 if someone who's working, I only have certain enrollment 00:07:21.440 --> 00:07:24.090 periods to change my health insurance options. 00:07:24.090 --> 00:07:27.560 Correct is the day I turn 65 one of those cases where 00:07:27.560 --> 00:07:29.540 I can enroll in Medicare or is it 00:07:29.540 --> 00:07:32.780 like should I time like, oh, if I'm going to be on COVID for 18 00:07:32.780 --> 00:07:34.910 months or I only have 18 months, should 00:07:34.910 --> 00:07:38.330 I make sure it falls within this window of where the portal is 00:07:38.330 --> 00:07:40.570 open for me to get Medicare. 00:07:40.570 --> 00:07:44.380 So Medicare has a few different actually enrollment periods. 00:07:44.380 --> 00:07:48.800 OK, OK, so the first is so if you retire early 00:07:48.800 --> 00:07:51.060 and let's just say you took social security benefits. 00:07:51.060 --> 00:07:53.370 Right and this is for Medicare. 00:07:53.370 --> 00:07:56.532 And b, if you are already taking social security, 00:07:56.532 --> 00:07:58.740 you're actually automatically enrolled into Medicare. 00:07:58.740 --> 00:08:00.000 You don't have to actually do anything. 00:08:00.000 --> 00:08:02.208 Oh, they'll send you a packet three months before you turn 00:08:02.208 --> 00:08:04.340 65 and say airline. 00:08:04.340 --> 00:08:05.040 Everything ok? 00:08:05.040 --> 00:08:07.320 So I don't have to go online and like, OK, 00:08:07.320 --> 00:08:10.460 if you are collecting social security, OK, OK. 00:08:10.460 --> 00:08:12.740 If you're not, then the first enrollment period 00:08:12.740 --> 00:08:16.040 is actually the seven months surrounding your birthday. 00:08:16.040 --> 00:08:18.560 OK, so three months prior, the month of your birth 00:08:18.560 --> 00:08:22.110 date when you turn 65 and then the three months passed. 00:08:22.110 --> 00:08:25.380 OK, so that is the first enrollment period. 00:08:25.380 --> 00:08:30.410 Beyond that, the second enrollment period 00:08:30.410 --> 00:08:34.250 would be actually surrounding the 00:08:34.250 --> 00:08:37.370 when your coverage lapses or ends on your group plan. 00:08:37.370 --> 00:08:39.860 OK, so that's actually the eight months post 00:08:39.860 --> 00:08:42.600 that post that period of like retirement. 00:08:42.600 --> 00:08:45.330 And when you're, you know, your whatever private insurance 00:08:45.330 --> 00:08:49.202 would stop, would stop at that point in time. 00:08:49.202 --> 00:08:50.660 And then the third is actually just 00:08:50.660 --> 00:08:52.890 January to March of every year. 00:08:52.890 --> 00:08:56.100 So January 1 and March 31st, open enrollment period 00:08:56.100 --> 00:08:59.970 at that point, so there's a lot of opportunities for you to get 00:08:59.970 --> 00:09:02.260 enrolled in Medicare when it's that time there is. 00:09:02.260 --> 00:09:03.040 Yeah, there is. 00:09:03.040 --> 00:09:04.980 Yeah so there's just making sure that it's 00:09:04.980 --> 00:09:07.140 not like one of those things that it'll slip by your mind. 00:09:07.140 --> 00:09:08.550 I just realized my license expired 00:09:08.550 --> 00:09:09.925 and like I just never renewed it. Yes 00:09:09.925 --> 00:09:11.480 so everything going on. 00:09:11.480 --> 00:09:13.230 And I got an email reminder like, hey, you 00:09:13.230 --> 00:09:14.147 haven't done this yet. So 00:09:14.147 --> 00:09:16.320 I was thinking with Medicare, the same thing 00:09:16.320 --> 00:09:19.590 like, oh, if you forget, not that well, you can't see that. 00:09:19.590 --> 00:09:22.230 The thing is like there's a qualifying period 00:09:22.230 --> 00:09:26.250 for you can't just not do it at 65 when you were 00:09:26.250 --> 00:09:28.410 supposed to have done it right. 00:09:28.410 --> 00:09:31.890 For if you have to have a qualifying reason why 00:09:31.890 --> 00:09:34.080 you didn't actually file for Medicare 00:09:34.080 --> 00:09:38.220 and be continued work or on your spousal benefits or, 00:09:38.220 --> 00:09:39.430 you know, other insurance. 00:09:39.430 --> 00:09:41.838 Right and if you don't, it's actually 00:09:41.838 --> 00:09:43.380 like one of the more severe penalties 00:09:43.380 --> 00:09:46.290 the government enforces if you actually 00:09:46.290 --> 00:09:48.220 do not enroll in Medicare. 00:09:48.220 --> 00:09:49.630 And what would some of those be? 00:09:49.630 --> 00:09:50.710 So it's. 00:09:50.710 --> 00:09:52.660 So the problem is it's forever. 00:09:52.660 --> 00:09:54.160 Right and this penalty. 00:09:54.160 --> 00:09:59.490 So it's 10% annually for your premiums, 00:09:59.490 --> 00:10:02.640 but that that 10% penalty that accrues each year. 00:10:02.640 --> 00:10:05.770 So it could be 20, 30% every month, the premiums. 00:10:05.770 --> 00:10:10.010 But that lasts the rest of your life if you forget to enroll. 00:10:10.010 --> 00:10:14.490 So that's a very important thing in this case. 00:10:14.490 --> 00:10:16.638 And we'll come back into again that Medicare costs 00:10:16.638 --> 00:10:17.680 and everything like that. 00:10:17.680 --> 00:10:19.380 And there's different parts of Medicare. 00:10:19.380 --> 00:10:21.510 But to come back into retiring early, 00:10:21.510 --> 00:10:22.825 we just went over Cobra 00:10:22.825 --> 00:10:24.450 again. The cost of that and how that might not 00:10:24.450 --> 00:10:26.950 be a very viable option because you got to cover both sides. Yeah 00:10:26.950 --> 00:10:29.880 what if my spouse was still working, 00:10:29.880 --> 00:10:33.810 let's say, you know, my wife or my significant other 00:10:33.810 --> 00:10:37.320 is going to work until for another three or four years. 00:10:37.320 --> 00:10:38.650 Could I hop on their insurance? 00:10:38.650 --> 00:10:39.400 Is that an option? 00:10:39.400 --> 00:10:41.130 Yes, that's something I forgot to mention, actually. 00:10:41.130 --> 00:10:41.800 So, Yeah. 00:10:41.800 --> 00:10:46.920 So let's say you are 63 and you're retiring, 00:10:46.920 --> 00:10:48.630 but your wife's going to continue working 00:10:48.630 --> 00:10:50.730 and maybe she has a group health insurance 00:10:50.730 --> 00:10:52.360 plan that's pretty beneficial. 00:10:52.360 --> 00:10:54.390 And you can actually just jump on that 00:10:54.390 --> 00:10:57.840 and get those benefits that would cover you until 65 00:10:57.840 --> 00:11:00.730 and then again, file for Medicare at that point in time. 00:11:00.730 --> 00:11:01.450 OK, Yeah. 00:11:01.450 --> 00:11:05.190 Is so like at is there a point where 00:11:05.190 --> 00:11:08.235 because it's a changing factor for me, turning 65, 00:11:08.235 --> 00:11:10.110 does that affect her health insurance or does 00:11:10.110 --> 00:11:13.890 she have to do anything on her end at that point? 00:11:13.890 --> 00:11:16.590 When you would turn 65 like so let's say 00:11:16.590 --> 00:11:18.220 I hop on Kristin's health insurance, 00:11:18.220 --> 00:11:21.780 yes, I am 65, then have to go to her health insurance provider 00:11:21.780 --> 00:11:24.083 and say, hey, I'm 65, I'm coming off now or doing more 00:11:24.083 --> 00:11:25.500 likely than not, you probably have 00:11:25.500 --> 00:11:27.250 to go to Medicare at that point in time. 00:11:27.250 --> 00:11:32.660 OK, in I mean, the cost for her in the company 00:11:32.660 --> 00:11:34.410 would obviously go from like a family plan 00:11:34.410 --> 00:11:35.650 down to that single individual. 00:11:35.650 --> 00:11:36.350 That's a big savings. 00:11:36.350 --> 00:11:37.017 Oh, yeah, right. So 00:11:37.017 --> 00:11:38.982 that's a big difference. 00:11:38.982 --> 00:11:41.190 And that's usually why they would make you, you know, 00:11:41.190 --> 00:11:43.740 go towards that Medicare version option. 00:11:43.740 --> 00:11:47.010 So, OK. 00:11:47.010 --> 00:11:48.130 OK, that's perfect. 00:11:48.130 --> 00:11:49.290 I'm trying to think, like if there's 00:11:49.290 --> 00:11:51.873 a reason why I'd want to stay on my spouse's insurance instead of Medicare. 00:11:52.740 --> 00:11:54.910 So each plan in company is going to be different. 00:11:54.910 --> 00:11:57.240 They might allow you to. 00:11:57.240 --> 00:11:58.740 You know, it depends on the benefits 00:11:58.740 --> 00:12:00.300 you're going to want to weigh them sometimes 00:12:00.300 --> 00:12:01.350 it's actually a cost. 00:12:01.350 --> 00:12:03.840 You can have similar benefits with Medicare 00:12:03.840 --> 00:12:05.590 and actually have a cost savings. 00:12:05.590 --> 00:12:08.430 So even if you're like, so let's say you're 67 and still working 00:12:08.430 --> 00:12:10.223 and have company health insurance, 00:12:10.223 --> 00:12:12.390 you still want to look into Medicare because you can 00:12:12.390 --> 00:12:13.840 have the same type of benefits. 00:12:13.840 --> 00:12:17.180 But it actually might be a cost savings in certain situations. 00:12:17.180 --> 00:12:20.760 So it might be fiscally prudent for you to actually look at. 00:12:20.760 --> 00:12:23.130 Exactly yeah, OK, that's right. 00:12:23.130 --> 00:12:26.310 That's a great point you're making. 00:12:26.310 --> 00:12:28.650 And then the other option is, again, 00:12:28.650 --> 00:12:30.870 if none of those are available to me, 00:12:30.870 --> 00:12:32.653 if I can't hop on my employers insurance, 00:12:32.653 --> 00:12:33.820 I can't help on my spouse's. 00:12:33.820 --> 00:12:37.770 I can't use Cobra because let's say I'm 61 and I want to retire 00:12:37.770 --> 00:12:39.060 or I need to retire. 00:12:39.060 --> 00:12:41.370 My other option is what? 00:12:41.370 --> 00:12:44.500 Just browse and you can browse the marketplace 00:12:44.500 --> 00:12:46.633 and ask health and the MassHealth Connector. 00:12:46.633 --> 00:12:48.550 If you go there, you can see what's available. 00:12:48.550 --> 00:12:52.783 You put in like what you're looking for, your statistics. 00:12:52.783 --> 00:12:55.200 And you can see what types of plans are available for you, 00:12:55.200 --> 00:12:57.780 whether it's a single family plan, etc., 00:12:57.780 --> 00:12:59.790 and the types of benefits are there. 00:12:59.790 --> 00:13:02.370 Does the price affect based on what my net worth is, 00:13:02.370 --> 00:13:05.160 let's say I have, you know, half a million saved up 00:13:05.160 --> 00:13:08.070 for retirement, but a lot of it's in 401(k)s versus or is 00:13:08.070 --> 00:13:10.930 an income based health care provider. 00:13:10.930 --> 00:13:13.350 It's going to be more income based. 00:13:13.350 --> 00:13:17.460 I guess the thing that it can affect less, 00:13:17.460 --> 00:13:20.760 I think, on the private insurance side and more 00:13:20.760 --> 00:13:22.840 about with Medicare and premiums. 00:13:22.840 --> 00:13:24.450 And you can actually have surcharges 00:13:24.450 --> 00:13:27.480 if you're on Medicare, if you're making too much income, not 00:13:27.480 --> 00:13:28.510 necessarily net worth. 00:13:28.510 --> 00:13:30.540 But if you have too much income, you 00:13:30.540 --> 00:13:32.500 could see a price increase because of premiums. 00:13:32.500 --> 00:13:36.060 And when you're on Medicare, OK, OK, that's good to know. 00:13:36.060 --> 00:13:38.657 So actually so actually, do you want to get into that drug? 00:13:38.657 --> 00:13:40.240 We'll just move our way into Medicare. 00:13:40.240 --> 00:13:41.970 So let's say now I'm at the point where 00:13:41.970 --> 00:13:43.450 I'm eligible for Medicare. 00:13:43.450 --> 00:13:45.750 What you said, like they send you a packet 00:13:45.750 --> 00:13:48.510 and they kind of, you know, like, hey, it's time. 00:13:48.510 --> 00:13:51.580 Well, that's if you are on social security, ok? 00:13:51.580 --> 00:13:52.080 All right. 00:13:52.080 --> 00:13:53.622 So they don't just send you a packet. And 00:13:53.622 --> 00:13:55.930 just because you're 65, right. 00:13:55.930 --> 00:13:56.860 You're not like AARP. 00:13:56.860 --> 00:13:59.580 Exactly you have to be the one that goes out and pursues this 00:13:59.580 --> 00:14:02.040 and looks at your different options. 00:14:02.040 --> 00:14:05.790 So when you're looking at enrolling 00:14:05.790 --> 00:14:08.730 in Medicare AAA and b, those are the two 00:14:08.730 --> 00:14:11.880 like the two general ones that you're required to. 00:14:11.880 --> 00:14:13.180 They don't cover everything. 00:14:13.180 --> 00:14:14.013 That's the downside. 00:14:14.013 --> 00:14:16.097 And that's why you hear about all these, you know, the 00:14:16.097 --> 00:14:17.650 alphabet's of Medicare, right? 00:14:17.650 --> 00:14:19.230 Abcde, right. 00:14:19.230 --> 00:14:24.450 Right so AAA and B cover about 80% 00:14:24.450 --> 00:14:27.360 of potential medical costs in your retirement. 00:14:27.360 --> 00:14:30.000 So you like using an example, an extreme example, 00:14:30.000 --> 00:14:33.840 I guess, you know, if you unfortunately came down 00:14:33.840 --> 00:14:36.510 with cancer or something like that and you know, 00:14:36.510 --> 00:14:38.280 we know what the costs potentially 00:14:38.280 --> 00:14:43.080 are of that hospital stay and all the treatments, et cetera. 00:14:43.080 --> 00:14:46.950 You know, if there's a cost of $100,000 00:14:46.950 --> 00:14:49.890 you actually might just if you just subscribed to and b, 00:14:49.890 --> 00:14:53.230 you might be on the hook for potentially $20,000. 00:14:53.230 --> 00:14:57.140 So 20% of potential medical costs would just be OK. 00:14:57.140 --> 00:14:59.320 So that risk is unlimited. 00:14:59.320 --> 00:15:00.650 It can go to any amount. 00:15:00.650 --> 00:15:01.990 There's no cap on that. 00:15:01.990 --> 00:15:05.810 OK, so that's why when you're exploring and you're in, 00:15:05.810 --> 00:15:07.860 you kind of if you're overwhelmed with, 00:15:07.860 --> 00:15:11.040 like the process you hear of like C and d, etc., 00:15:11.040 --> 00:15:14.490 it's the way it's to supplement what AAA and B are 00:15:14.490 --> 00:15:18.720 to make sure you cover that gap of that 20% 00:15:18.720 --> 00:15:21.720 or enhance like prescription coverage. 00:15:21.720 --> 00:15:23.670 That's going to be sort of like prescriptions. 00:15:23.670 --> 00:15:26.940 What about like dental insurance and other or eye vision. 00:15:26.940 --> 00:15:27.440 And Yeah. 00:15:27.440 --> 00:15:30.250 So this is where there's like a lot of different options 00:15:30.250 --> 00:15:30.750 available. 00:15:30.750 --> 00:15:35.520 Right so there's C And there's d, so Medicare, 00:15:35.520 --> 00:15:38.397 there's an the gap that gap coverage. 00:15:38.397 --> 00:15:40.230 There's a difference between there's Medigap 00:15:40.230 --> 00:15:42.390 and then there's Medicare Advantage. 00:15:42.390 --> 00:15:44.550 OK, so those are the two main options. 00:15:44.550 --> 00:15:46.740 And with Medicare Medigap is when 00:15:46.740 --> 00:15:50.220 you would get part D that's the prescription coverage. 00:15:50.220 --> 00:15:53.430 So Medigap has a little more flexibility 00:15:53.430 --> 00:15:56.960 than Medicare Advantage in. 00:15:56.960 --> 00:16:01.250 It's more widely accepted, there's a lot more, 00:16:01.250 --> 00:16:03.950 I'd say, pros and cons, Medicare Advantage 00:16:03.950 --> 00:16:06.440 is kind of like a boilerplate type plan 00:16:06.440 --> 00:16:09.450 where it has everything in one. 00:16:09.450 --> 00:16:14.420 If you wanted like one type of health insurance coverage 00:16:14.420 --> 00:16:18.260 with some have dental vision, gym memberships, 00:16:18.260 --> 00:16:20.000 things like that, OK. 00:16:20.000 --> 00:16:22.200 I think the main thing is when you're in your 60s, 00:16:22.200 --> 00:16:23.900 if you have like a good health care team 00:16:23.900 --> 00:16:25.890 already set up your doctors and everything. 00:16:25.890 --> 00:16:28.755 Right you want to see what they are, except they would accept 00:16:28.755 --> 00:16:31.130 in terms of insurance, that's like the main thing I would 00:16:31.130 --> 00:16:31.630 say. You 00:16:31.630 --> 00:16:34.412 see what they'll get in terms of health insurance 00:16:34.412 --> 00:16:35.870 and then you kind of go from there, 00:16:35.870 --> 00:16:38.120 because I don't think you want to make any big changes at 00:16:38.120 --> 00:16:39.090 that point in time. 00:16:39.090 --> 00:16:43.550 Right so are there let's say I have pre-existing conditions. 00:16:43.550 --> 00:16:46.820 Does that affect my ability to get certain types of Medicare 00:16:46.820 --> 00:16:52.097 so guaranteed coverage so you don't have Medigap and Medicare 00:16:52.097 --> 00:16:53.180 Advantage once you get in? 00:16:53.180 --> 00:16:54.950 There's guaranteed coverage going forward. 00:16:54.950 --> 00:16:59.660 You want to make sure that you can't they cannot increase 00:16:59.660 --> 00:17:02.460 premiums based on what your health is at that point. 00:17:02.460 --> 00:17:04.557 OK, but if I'm going into it, let's 00:17:04.557 --> 00:17:06.140 say like I have a skin condition right now 00:17:06.140 --> 00:17:08.390 and I'm 65, getting ready to retire, 00:17:08.390 --> 00:17:11.060 my employer coverage ends. 00:17:11.060 --> 00:17:13.490 There's is there technically a gap in between 00:17:13.490 --> 00:17:15.630 for going from one provider to another? 00:17:15.630 --> 00:17:19.190 And could my Medicare could they look at my history 00:17:19.190 --> 00:17:22.460 and say, like, oh, you have to have this procedure done 00:17:22.460 --> 00:17:24.470 every year, we're going to actually charge you 00:17:24.470 --> 00:17:25.609 more for premiums? 00:17:25.609 --> 00:17:28.580 No, but that would OK, that would maybe 00:17:28.580 --> 00:17:31.330 potentially change what insurance you want you want. 00:17:31.330 --> 00:17:33.770 Right so that's why when like when you're away 00:17:33.770 --> 00:17:37.070 from retirement, you want to or a year away from 65, 00:17:37.070 --> 00:17:39.530 you want to make sure ideally you get that like I have 00:17:39.530 --> 00:17:43.010 a full physical done, you know, see what sort of underlying 00:17:43.010 --> 00:17:44.690 issues you may have to make sure you 00:17:44.690 --> 00:17:46.850 get the right type of coverage going forward. 00:17:46.850 --> 00:17:50.330 OK, for set issues because 00:17:50.330 --> 00:17:52.080 something could be discovered at that point in time. 00:17:52.080 --> 00:17:54.038 And you really don't want to skimp on insurance because the 00:17:54.038 --> 00:17:57.110 risk, the financial risk 00:17:57.110 --> 00:18:01.910 is far greater than what the cost of the premiums could be. 00:18:01.910 --> 00:18:03.120 Temporary or now? 00:18:03.120 --> 00:18:07.730 Yeah, I think that's a very not hidden cost, 00:18:07.730 --> 00:18:10.498 but unexpected cost in health care 00:18:10.498 --> 00:18:12.290 costs. Yeah, its health care costs, long term care 00:18:12.290 --> 00:18:14.130 costs, those go kind of go hand in hand 00:18:14.130 --> 00:18:17.840 and that's can again be jeopardize your retirement 00:18:17.840 --> 00:18:19.317 picture pretty easily. 00:18:19.317 --> 00:18:20.900 You said something a moment ago that I 00:18:20.900 --> 00:18:23.010 think is very important to take away from this. 00:18:23.010 --> 00:18:27.440 It's planning ahead on this kind of concept of, 00:18:27.440 --> 00:18:29.810 OK, I should probably get a physical done 00:18:29.810 --> 00:18:32.890 or get some tests done while I still have my employer's 00:18:32.890 --> 00:18:35.390 health insurance or whatever it may be to see what those underlying 00:18:35.390 --> 00:18:36.470 causes are. 00:18:36.470 --> 00:18:39.890 So it helps me determine what my best options are. 00:18:39.890 --> 00:18:42.440 What I'm looking at for Medicare, medigap, Medicare 00:18:42.440 --> 00:18:46.280 Advantage a year out, you get that physical done 00:18:46.280 --> 00:18:49.710 and then six months out from being 65 a retirement. 00:18:49.710 --> 00:18:52.340 Then you start, you know, you see 00:18:52.340 --> 00:18:55.910 what your doctor or your team of doctors or health care 00:18:55.910 --> 00:18:58.550 physicians will accept for insurance 00:18:58.550 --> 00:19:00.570 and then you start weighing your options. 00:19:00.570 --> 00:19:04.010 After that, you can go on, you know, again, Medicare.gov. 00:19:04.010 --> 00:19:06.050 You can start and then you can do comparisons 00:19:06.050 --> 00:19:08.180 between the Medigap and Medicare, 00:19:08.180 --> 00:19:12.170 Medicare Advantage plans for the pros and cons and the benefits 00:19:12.170 --> 00:19:16.730 that they cover, the costs associated with such a coup. 00:19:16.730 --> 00:19:19.920 And then and then the MassHealth Connector. 00:19:19.920 --> 00:19:22.580 You can go on there as well and see again what's 00:19:22.580 --> 00:19:24.265 available for coverage, too. 00:19:24.265 --> 00:19:26.390 So there's a lot and there is a lot of useful tools 00:19:26.390 --> 00:19:28.473 out there just kind of navigating your way through and 00:19:28.473 --> 00:19:31.550 trying not to be too overwhelmed because there 00:19:31.550 --> 00:19:32.820 is a lot of options. 00:19:32.820 --> 00:19:33.480 It is, Yeah. 00:19:33.480 --> 00:19:35.955 Yeah like you said, I like that paradox of choice. 00:19:35.955 --> 00:19:37.580 Like, there's so many options out there 00:19:37.580 --> 00:19:39.810 that you can really it can really make you hesitate. 00:19:39.810 --> 00:19:42.350 Yes freeze and not make any choice. 00:19:42.350 --> 00:19:44.630 Exactly in the one thing I will say 00:19:44.630 --> 00:19:49.372 is like the Medicaid GAAP versus Medicare Advantage plans 00:19:49.372 --> 00:19:51.080 with medigap, it's a little more flexible 00:19:51.080 --> 00:19:53.900 where you can actually, you know, 00:19:53.900 --> 00:19:57.560 you can move from that plan to if you decide 00:19:57.560 --> 00:20:01.250 you don't like the Medigap coverage to Medicare 00:20:01.250 --> 00:20:02.760 Advantage in the future. 00:20:02.760 --> 00:20:05.330 Right where is it going the other way 00:20:05.330 --> 00:20:06.450 for Medicare advantage? 00:20:06.450 --> 00:20:09.033 You only have a 12 month period where you can make that change and then 00:20:09.033 --> 00:20:11.760 otherwise you can not. 00:20:11.760 --> 00:20:14.780 OK, OK, so or you can, I should say, but then 00:20:14.780 --> 00:20:17.300 you have to prove insurability. 00:20:17.300 --> 00:20:21.650 Well, insurability for the new sublearn insurance. 00:20:21.650 --> 00:20:24.080 OK, so say that, repeat that again so I 00:20:24.080 --> 00:20:27.410 can go from Medigap to Medicare Advantage to be. 00:20:27.410 --> 00:20:30.330 Yeah but if I'm on Medicare and there's a little more Yeah. 00:20:30.330 --> 00:20:32.060 There's some more hoops to kind of jump, 00:20:32.060 --> 00:20:33.750 to jump through, to go back to something else. 00:20:33.750 --> 00:20:35.667 If I we talked about the MassHealth connector, if 00:20:35.667 --> 00:20:38.660 I'm on Medicare and I don't want Medigap or Medicare 00:20:38.660 --> 00:20:41.300 advantage, could I find a private health insurance 00:20:41.300 --> 00:20:43.220 to supplement my. 00:20:43.220 --> 00:20:45.650 My whatever Medicare doesn't cover, 00:20:45.650 --> 00:20:48.390 well, those are what the Medigap in those days. 00:20:48.390 --> 00:20:52.370 Yeah so they can just keep going back to Blue Cross blue shield, 00:20:52.370 --> 00:20:54.530 but like those, that might be a company 00:20:54.530 --> 00:20:55.970 that offers that Medigap. 00:20:55.970 --> 00:20:57.700 Medigap OK. 00:20:57.700 --> 00:21:00.140 OK I was thinking a Medicare Advantage, 00:21:00.140 --> 00:21:02.110 or Medigap or something. 00:21:02.110 --> 00:21:04.478 You know, that's just the near to terms. 00:21:04.478 --> 00:21:06.770 Exactly but they're offered by private health insurance 00:21:06.770 --> 00:21:07.270 companies. OK, 00:21:07.270 --> 00:21:11.840 OK, so there you are held to a standard 00:21:11.840 --> 00:21:13.440 to offer best rates to. 00:21:13.440 --> 00:21:15.608 So it's not just like you what 00:21:15.608 --> 00:21:17.150 you want to explore the different options 00:21:17.150 --> 00:21:18.420 available with the different companies. 00:21:18.420 --> 00:21:20.795 But there are they have to offer you the best rates based on 00:21:20.795 --> 00:21:22.580 your age and statistics. 00:21:22.580 --> 00:21:23.520 OK, awesome. 00:21:23.520 --> 00:21:24.020 So, Yeah. 00:21:24.020 --> 00:21:27.590 So you don't have to worry about like Blue Cross versus Athena 00:21:27.590 --> 00:21:28.290 versus. 00:21:28.290 --> 00:21:30.203 Yeah the benefits may change though. 00:21:30.203 --> 00:21:30.870 You just got to. 00:21:30.870 --> 00:21:32.120 That's what you want to weigh. The 00:21:32.120 --> 00:21:33.830 comparisons aren't OK. 00:21:33.830 --> 00:21:36.060 Perfect and I can get a lot of that at Medicare. 00:21:36.060 --> 00:21:37.200 Yeah all that. 00:21:37.200 --> 00:21:38.450 Yeah perfect. 00:21:38.450 --> 00:21:41.820 I think that's, that's all I have written down here. 00:21:41.820 --> 00:21:44.360 Is there anything else that I'm missing or people. 00:21:44.360 --> 00:21:45.120 I don't think so. 00:21:45.120 --> 00:21:47.420 I mean, we could go into three hours 00:21:47.420 --> 00:21:50.203 about of conversation about this. 00:21:50.203 --> 00:21:51.620 There's a lot of different options 00:21:51.620 --> 00:21:53.128 that can be very overwhelming. 00:21:53.128 --> 00:21:55.420 But just make sure you kind of like map everything out. 00:21:55.420 --> 00:21:57.890 And I think if you do everything in stages 00:21:57.890 --> 00:22:00.560 so, you know, you don't have to do it all at once, 00:22:00.560 --> 00:22:01.730 that's the easiest way. 00:22:01.730 --> 00:22:02.300 Right? 00:22:02.300 --> 00:22:05.990 like when you're 12 months out, six months out from retirement 00:22:05.990 --> 00:22:08.210 or 65, that's like the best process. 00:22:08.210 --> 00:22:13.520 So as this kind of curtails into my overall retirement planning 00:22:13.520 --> 00:22:16.910 strategy, how does meeting with a financial advisor 00:22:16.910 --> 00:22:19.160 play into my Medicare coverage, aside 00:22:19.160 --> 00:22:20.540 from what we just talked about? 00:22:20.540 --> 00:22:23.030 You need to budget aside x amount of money. 00:22:23.030 --> 00:22:24.840 I mean, there's the budget aspect. 00:22:24.840 --> 00:22:29.280 There's the what's my financial risk of you? 00:22:29.280 --> 00:22:30.690 Not under underinsurance. 00:22:30.690 --> 00:22:32.670 Right so you're going to make sure like what? 00:22:32.670 --> 00:22:35.060 You're choosing the right plan based on that. 00:22:35.060 --> 00:22:39.560 And like, if you're just not as aware, like the pros 00:22:39.560 --> 00:22:42.320 and cons between the plans, you can always have like someone 00:22:42.320 --> 00:22:44.110 have a second look at it for you. 00:22:44.110 --> 00:22:45.750 Yeah second opinion on it. 00:22:45.750 --> 00:22:48.300 But, you know, with the proper planning. 00:22:48.300 --> 00:22:50.870 Yet health care could cost, you know, 00:22:50.870 --> 00:22:55.030 should cost for a married couple in less than $10,000 a year. 00:22:55.030 --> 00:22:55.530 Went on. 00:22:55.530 --> 00:22:59.000 Medicare is more like the suppliments, 00:22:59.000 --> 00:23:03.620 but the financial burden could be so far greater 00:23:03.620 --> 00:23:07.950 if you don't make sure you you're insured enough, I guess. 00:23:07.950 --> 00:23:10.130 Right to go back to the beginning, what 00:23:10.130 --> 00:23:13.160 you said about the whole like if medical care only 00:23:13.160 --> 00:23:18.160 covers that first 80 percent, not that kind of scare people. 00:23:18.160 --> 00:23:20.480 Yeah, like, that's a big thing, especially because I've 00:23:20.480 --> 00:23:21.720 seen hospital bills. 00:23:21.720 --> 00:23:23.570 Exactly and some of those numbers, 00:23:23.570 --> 00:23:26.100 it's like you don't believe that they're charging for that. 00:23:26.100 --> 00:23:28.280 But like they can escalate pretty quickly 00:23:28.280 --> 00:23:31.200 with like a few days, stay in a hospital for whatever reason. 00:23:31.200 --> 00:23:34.050 It might be like a blood to other day. 00:23:34.050 --> 00:23:36.510 And they itemized the needle that they use the prick, 00:23:36.510 --> 00:23:38.240 you know, it's like it's like. 00:23:38.240 --> 00:23:39.202 Oh, yeah, but Yeah. 00:23:39.202 --> 00:23:40.410 So I can definitely see that. 00:23:40.410 --> 00:23:42.202 Yeah you want to make sure you come for it. Yeah because it's 00:23:42.202 --> 00:23:45.123 again the risk is unlimited. 00:23:45.123 --> 00:23:47.040 Thank you for taking the time to go over this. 00:23:47.040 --> 00:23:50.390 I know that the health care options and everything are not 00:23:50.390 --> 00:23:54.470 really part of what we focus on in the wealth management 00:23:54.470 --> 00:23:56.750 aspect, but it kind of is in the long term 00:23:56.750 --> 00:23:59.400 overall umbrella of retirement planning. 00:23:59.400 --> 00:24:02.270 So I appreciate the time to actually go over and sit down 00:24:02.270 --> 00:24:03.153 and talk about this. 00:24:03.153 --> 00:24:04.320 And thank you for having me. 00:24:04.320 --> 00:24:05.990 And it's always a pleasure to be here. 00:24:05.990 --> 00:24:07.010 Thank you. 00:24:07.010 --> 00:24:08.835 I like being here too. 00:24:08.835 --> 00:24:11.210 If you have any questions for us at rabina willing Wealth 00:24:11.210 --> 00:24:12.627 Partners or have something we want to 00:24:12.627 --> 00:24:15.230 talk about on a future episode of after the paycheck, 00:24:15.230 --> 00:24:17.053 head over to after the Paycheck dotcom 00:24:17.053 --> 00:24:19.220 and just fill out the form at the bottom of the page 00:24:19.220 --> 00:24:21.670 until next time the.